British energy major BP announced Tuesday it is on track to transfer operations of the strategic Baku-Tbilisi-Ceyhan (BTC) oil pipeline to Azerbaijan’s state oil company, SOCAR, effective July 1.

The transition fulfills a long-standing contractual obligation, marking a major shift in the management of one of the region's most critical energy corridors.

Operational since 2006, the BTC pipeline is a cornerstone of regional energy security. It is engineered to transport more than 1 million barrels of crude oil per day from the Caspian Sea directly to the Mediterranean port of Ceyhan, Turkey.

By establishing this route, the pipeline successfully bypasses politically sensitive and volatile areas, including Iran and Russia's Caucasus region, providing Western markets with a direct supply line.

Giovanni Cristofoli, BP's regional president for Azerbaijan, Georgia and Turkey, emphasized that the operational handover does not signal an exit from the region.

"This is not about BP divesting," Cristofoli said in a statement, adding that the company is "excited" to see SOCAR assume the role of the pipeline's operator.

Despite the announcement, questions remain regarding the specific terms of the transition.

BP did not immediately respond to Reuters’s requests for comment clarifying the exact nature of the contractual obligations or how this managerial shift might impact BP’s long-term financial stake in the asset.

Despite the move, the ownership structure of the pipeline will remain diverse, with SOCAR currently holding the largest share in the venture, controlling a 32.97% stake through its AzBTC subsidiary.

BP maintains a substantial 30.1% stake, while the remaining 36.93% is split among eight other international stakeholders.

Industry analysts view the transition as a significant milestone for SOCAR, reflecting Azerbaijan’s growing capability to independently manage world-class energy infrastructure.

While BP steps back from day-to-day operations of the pipeline, both companies are expected to maintain their tight-knit partnership across various Caspian exploration and production projects.